The Texas Attorney General announced on January 7, 2013 that New York pharmaceutical company Hi-Tech Pharmacal Co. will pay the state of Texas and the federal government a combined $25 million to settle the government’s claims that Hi-Tech overcharged the Texas Medicaid program for prescription drugs.

The parties struck an agreement on December 19, 2013, which requires Hi-Tech to pay the government a combined $25 million and reimburse the Texas Attorney General for investigative and legal costs incurred. The parties agreed that the settlement represents only a compromise on the disputed issues and “is neither an admission of any facts or liability by Hi-Tech, nor a concession by the State that the State’s allegations and claims are not well-founded.”

Texas will recoup approximately $11.2 million for its share of the settlement. The Texas Attorney General’s press release is available here.